- Marathon has stated that for the time being, its activities would continue to be hosted by Compute North and have noted an increase in BTC mining output in Q3.
- The company can continue operating under a Chapter 11 filing while it develops strategies to reorganize and repay creditors.
A pioneer in protecting and maintaining the Bitcoin ecosystem, Marathon Digital Holdings, Inc. (NASDAQ:MARA) (“Marathon” or “Company”) disclosed unaudited bitcoin (“BTC”) production and miner installation statistics for September 2022.
The majority of the risk, $50 million in operational deposits, were “primarily connected to King Mountain and Wolf Hollow security deposits and prepayments associated with the operational phase of those facilities,” according to Marathon’s disclosure on October 6.
On Thursday, the business filed for Chapter 11 bankruptcy before Judge David Jones in the United States Bankruptcy Court for the Southern District of Texas.
The company can continue operating under a Chapter 11 filing while it develops a strategy to pay off creditors.
Bankruptcy filings have been one of the hot topics this year. Celsius Network, a cryptocurrency lender, revealed that it has filed for Chapter 11 bankruptcy in the United States, over a month after restricting withdrawals and ceasing all operations.
No mining operations are owned by Marathon Digital. Instead, it operates out of data centers run by independent contractors like Compute North.
Marathon, however, said that it doesn’t expect its operations to be impacted by Compute North’s bankruptcy because it’s still concentrating on the 23 exe hashes per second (EH/s) growth target for 2023. It can now produce 5.7 EH/s.
As of September 30, 2022, 2,582 BTC had been created, up 23% over the same period in the previous year.
Benefiting from a reduction in the market price for the S19 XPs scheduled to ship in October; price reductions are anticipated to continue as more XPs are delivered in November and December.
Last month, Compute North declared bankruptcy as a result of the cash problems brought on by the bear market. The company claims that declaring bankruptcy would enable it to restructure its operations. 200 creditors are owed about $500 million by the company.
Marathon is now moving almost 3,000 of its miners to new locations from Compute North’s operations in Nebraska and South Dakota.
This migration, which was initially slated to take place on October 3, 2022, when the Company’s contracts at these sites expire, has nothing to do with Compute North’s bankruptcy.
Purchasing our securities carries a significant amount of risk. The risks, uncertainties, and forward-looking statements detailed under “Risk Factors” in Item 1A of our most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the SEC on March 10, 2022, should be seriously evaluated before making an investment choice.
The company’s operations, financial situation, or operational outcomes would probably suffer if any of these threats materialized. The value of the securities could then decrease, and users might end up losing some or all of their investments.